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Press Release
SK Telecom unveils Restructuring Plan
1998.01.15SK Telecom(President: Jung Uck Seo) announced ’98 Restructuring Plan on 15th which is centered on three themes-Responsible Management, Market-oriented Management, and Reorganized Business Division system.
* Streamlining subsidiaries and disintegrating marketing from production team
To promote swifter decision-making and greater accountability, each local offices will be restructured into separate marketing and production teams, with small offices incorporated into either wide-area sales offices or regional production headquarters.
* More accountability at the Headquarters, more flexibility at regional centers
The Headquarters added Paging Services division as an umbrella unit of Marketing division so as to guarantee more responsible management in each business division. While headquarters structure is downsized, regional offices and production headquarters are given more responsibilities to encourage greater efficiency.
* Streamlining Business division structure
To support new businesses take root and to enhance flexibility in deploying manpower, Information Business Division is created for Netsgo Internet access service, while transmission network business and CATV business are merged into Network Business Division. Other existing businesses will also go through similar streamlining, and stepped-up Incentives system based on job performance will be put in place.
* Sharpen competitiveness through Responsible Management, Market-oriented Management
SK Telecom will downsize its organization by 30% with a goal to get rid of inefficiency and redundancy. To that end, overlapping functionality will be merged or incorporated into larger units.
SK Telecom ’98 Restructuring Plan is aimed at sharpening competitiveness as profitability falls amid fierce competition. SK Telecom’s move is not only to respond to domestic challenges but also designed to proactively prepare for market opening by gaining world-class productivity.
Business Process Reengineering project is scheduled to begin on the tail of recent Restructuring as SK Telecom is committed to bringing competitiveness to a even higher level.
* Streamlining subsidiaries and disintegrating marketing from production team
To promote swifter decision-making and greater accountability, each local offices will be restructured into separate marketing and production teams, with small offices incorporated into either wide-area sales offices or regional production headquarters.
* More accountability at the Headquarters, more flexibility at regional centers
The Headquarters added Paging Services division as an umbrella unit of Marketing division so as to guarantee more responsible management in each business division. While headquarters structure is downsized, regional offices and production headquarters are given more responsibilities to encourage greater efficiency.
* Streamlining Business division structure
To support new businesses take root and to enhance flexibility in deploying manpower, Information Business Division is created for Netsgo Internet access service, while transmission network business and CATV business are merged into Network Business Division. Other existing businesses will also go through similar streamlining, and stepped-up Incentives system based on job performance will be put in place.
* Sharpen competitiveness through Responsible Management, Market-oriented Management
SK Telecom will downsize its organization by 30% with a goal to get rid of inefficiency and redundancy. To that end, overlapping functionality will be merged or incorporated into larger units.
SK Telecom ’98 Restructuring Plan is aimed at sharpening competitiveness as profitability falls amid fierce competition. SK Telecom’s move is not only to respond to domestic challenges but also designed to proactively prepare for market opening by gaining world-class productivity.
Business Process Reengineering project is scheduled to begin on the tail of recent Restructuring as SK Telecom is committed to bringing competitiveness to a even higher level.